Allowed

State Bank of India v. M/S. Surex Engineering Works

DRT9 Jan 2024OA/204/2023

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed an Original Application filed by State Bank of India for recovery of approximately Rs. 2.9 crores with interest against a partnership firm and individual guarantors who failed to repay cash credit and loan facilities. The bank was directed to proceed against secured and unsecured assets.

What did the court decide?

Ordered respondents to pay Rs.29,07,104/- with interest and costs; permitted sale of hypothecated/mortgaged properties and recovery from personal assets of guarantors.

State Bank of India versus M/S. Surex Engineering… — Contract and Commercial Disputes | DRT (2024)

¶1

IN THE DEBTS RECOVERYTRIBUNAL-I AT HYDERABAD

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DATED THIS THE 9TH DAY OF JANUARY' 2024

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No,2O4 ot 2023

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Between:

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State Bank of India, Stressed Assets Recovery Branch, Bus Terminal complex, Koti, Hyderabad - 500 095. Represented by its Chief Manager

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Applicant

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VERSUS

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M/s. Surex Engineering works, Represented by its Partner Mr. Syed Nasir Hussain, G-l4lA, Hussain Sab Road, Rural Industrial Area, AlliPur, Zaheerabad, Sangarreddy district Telangana - 502 002.

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Mr. Syed Nasir Hussain, s/o Mr. Syed Munawar Hussain, aged major, male, 6-2-16416, sapphire castle, G-2, 1't floor, P & T colony, Near Glendale Academy School, Suncity, Bandlagudalagir, Danbasco Nagar, Rajendranagar, K.V. Ranga Reddy, Telangana- 500 086.

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Also at:

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l- 6- I 13 / B, Ada rsh na ga r,
Zaheerabad, Sangareddy district,
Telangana - 502 220.
Arsoat
fi'':$l.:
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;': -;
H.No.11-9s, Moosanagar ,.#,lf,
Allipur, Zaheerabad - s02 2?pt n g JA}| z$]q ,.{
Sanga Reddy district, TelanS[4g .5
-qle,e#
%'+ ,o(fl97

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(OA.No.204 of 2023)

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Mr. Syed Muzafeer Hussain, s/o Mr. Syed Munawar Hussain, aged major, male, 1-8-113/1, Adarshnagar, Zaheerabad, Sangareddy district, Telangana - 502 220.

¶15

Also at :

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6-2- 164 / 6, sapphire castle, G-2, 1st floor, P &T colony, Near Glendale Academy School, School, Suncity, BandlagudaJaglr, Danbasco Nagar, Rajendranagar, K.V. Ranga Reddy, Telangana- 500 086.

¶17

Also at

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H.No.11-95, Moosanagar colony, Allipur, Zaheerabad - 502 220. Sanga Reddy district, Telangana

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Mr. Syed Hajee Hussain, s/o Mr. Syed Munavar Hussain, aged major, male, 1-6- 1 13/B, Adarshnagar, Zaheerabad, Sangareddy district, Telangana - 502 220.

¶20

Also at :

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6-2-164 I 6, sapphire castle, G-2, 1tt floor, P &T colony, Near Glendale Academy School, School, Suncity, Bandlagudalagir, Danbasco Nagar, Rajendranagar, K.V. Ranga Reddy, Telangana- 5

¶22

Also at:

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H.No.11-95, Moosanagar colo Allipur, Zaheerabad - 502 220 Sanga Reddy district, Telanga

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$, ' ',:.: ,q2{ 0s nd a nts r,l

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Counsel for the Pa rties:

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For the Applicant

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For the Defendants

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Sri C. Prabhakar Exparte

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(OA.No.204 of 2023)

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ORDER

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The Applicant Bank filed the present OA against Defendants for recovery of a total sum of Rs.29,07,104/- (Rupees Twenty Nine Lakhs Seven thousand One hundred and four only) i.e., a sum of Rs.28,08,162/- with further interest @ 19.25olo^p.a with monthly rests and a sum of Rs.98,942l- with further interest @ 10.30o/o^p.a with monthly rests from date of OA till the date of realization and in default for sale of hypothecated and mortgaged^properties as described in the schedules "I to III" to OA.

¶32

As per the averments in the application, the Applicant^Bankstates that defendant No.1 is a^partnership firm /^principal borrower and defendants 2 to 4 stood as^guarantors for carrying on the business^of manufacturing and fabrication works, The defendants availed^cash credit loan of Rs.8.00 lakhs in the year 2008. To^securedue repayment of aforesaid cash credit loan, defendant no.4 created equitable mortgage on 03.12.2009 by way of deposit of sale^deed no.42Oll99B dated 16.02.1998 in respect of OA Schedule^{property -} II and sale deed No,42111998 in respect of OA schedule^property - III. The cash credit loan of Rs.8.00 lakhs was renewed through^letter of arrangement dated 28.08.?01" Defendant no.4 executed s^{uara ntee as reement o".qe('*i;'Oe} i$i&$defendants also availed CC-SBF loan 20.00 of arrangement

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(OA.No.204 of 2023)

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dated 31.03.2016. To secure due repayment of aforesaid loan facilities, the defendant no.1 created primary charge by way of hypothecation of movable assets more fully described under OA schedule Property-I. After availing the loan facilities, the defendants failed to comply the terms of sanction, hence the applicant bank was constrained to classify the account as NpA and issued legal notice dated 03.06.2023. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

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Defendants called absent and set exparte on 05.12.2023,

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Shri K. GovindRaju, Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.24.

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5, Heard the Ld. Counsel for the Applicant Bank.

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The point that arise for consideration is whether the Applicant Bank is entitled for the claim made in the OA against the Defendants as prayed for?

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Defendants called Jo substantiate the case of the Applicant e Applicant Bank was {

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(OA.No.204 of 2023)

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examined and he exhibited relevant documents as Ex.A1 to A.24. In view of the above, I hold that the Applicant Bank has established their claim made in the OA against the Defendants and hence the Applicant Bank is entitled to recover the claim made in the OA with future interest and costs.

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B. In the result, the present OA is allowed with costs, as under:

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The Defendants are joinfly and severaily riabre to pay to the Appricant Bank a total sum of Rs.29,O7,104/- (Rupees Twenty Nine Lakhs Seven thousand One hundred and four only) i.e,, a sum of Rs.28,08,162l- with further interest @ 19.25olo p.aand a sum of Rs.98,942/- with further interest @ 10.30o/o p.afrom date of OA till the date of realization.

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The Applicant bank is entiued to proceed against the hypothecated movables and mortgaged properties as described in the schedules "I to III" to OA towards realization of the debt due,

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the Applicant Bank is also entiUed to proceed against the person and properues of defendants No.2 to 4 and properties of Defendant no.1 firm towards realization of the debt due.

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The Applicant Bank is the OA.
,t'
i 0eJA}l,* i
fr,]*,-,*os
r, ':'-r3;;:;: ;.

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(oA.No.204 of 2023)

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The Applicant shall file a cost memo within two weeks from the date of receipt of order.

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Issue Recovery certificate accordingly.

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Communicate a copy of the order to the pafties concerned.

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(Dictated to the P.A., transcribe.d by her, corrected, signed and pronounced by me in the open court on this the 9th day of Jan 2024)

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sdt(G. GOPTCHAND) PRES!DING OFFICER

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rRugcoP)I r .!,f^^,--ly

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State Bank of India v. M/S. Surex Engineering Works

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S. Surex Engineering Works

Case brief

What is this about?

What did the court decide?

What the court decided

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